In August the Bank of England cut the base rate to 0.25% which was the first adjustment in over seven years.
Just one in four (27%) homeowners understand how cuts to the Bank of England’s base rate could affect their mortgage payments, research from Trussle shows.
In August the Bank of England cut the base rate to 0.25% which was the first adjustment in over seven years.
The cut led to falls in 2-year fixed rates which were available for as little as 1.39%.
Ishaan Malhi, chief executive and founder of Trussle, said: “The base rate is the most significant factor affecting mortgage rates, so it's a shame that so few understand its effect on the most important financial commitment of their life.”
The study further suggested a gender divide between male and female borrowers, with 35% of men understanding the base rate effect compared to just 19% of women.
Malhi added: "The industry has a role to play in demystifying mortgages for consumers, educating borrowers to make mortgages more accessible, but it’s vital that borrowers are clued up about when and how they should switch to a better rate, especially since today's rates are as low as they've ever been."
Only a third (36%) were content with what they were paying in the current environment of low mortgage rates, with a third being on standard variable rates.
